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Diamond WiFi Repeater issues...driving me insane! Please help

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Hello,
We have a Belkin N router upstairs in the house....I have never had good reception downstairs in the basement, almost non-existent. I ended up buying a Diamond WiFi Repeater, and at first we had no troubles....computers downstairs and my iPhone were able to finally get strong signals down in the basement. Then something happened, and I'm not sure if it's due to two of the 4 computers getting Windows 7 or not. But now the two computers with Windows 7 constantly give IP Address Conflict errors and/or won't connect to the internet. The two Windows XP computers downstairs connected via WiFi have no issues, and my iphone has no issues. I know it's the Diamond Repeater because if I fire up the Windows 7 desktop (connected to the router via cable), it won't connect....as soon as I unplug the repeater, I am able to connect again. Now if I plug the repeater back in after the Windows 7 computers are connected to the internet, then it doesn't seem to have an issue, until the next time I try to start the computer fresh with the repeater already plugged in.

I have emailed Diamond about this, and my response back was as follows, and of course they didn't tell me how to do any of this:
"If your repeater is causing that kind of error, it's because the router is trying to give the same address to the computer and the repeater. If you give either the computer or the repeater a static IP address, your issue should be alleviated."

Ok, I am not very good with networking stuff, so I have no idea how to do this. I tried resetting the Diamond Repeater, and tried finding out if there was a place to change the ip address to a static one, and I can't figure this out. Do I need to be changing the two computers with Windows 7 to static IP Addresses instead of trying to change the repeater? The only problem is that one of the Windows 7 computers is my mother-in-law's laptop, and it's her work computer set up by her company's IT department, so she doesn't want to mess with any settings.

I just find it odd that only the Windows 7 computers are having issues, and not my XPs.

Please help if able, Thank you!

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